This Commissions Guide article relates to Keystart residential loans.
Connective will maintain this guide to the best of its ability but cannot guarantee that the information within is complete, and/or in line with the latest guidance and policies of the lender. If you believe anything is missing or inaccurate, please contact us.
Contents:
Commission Rates
| ex GST | inc GST |
Upfront | 0.5% | 0.55% |
Trail | 0.1% | 0.11% |
Upfront Commission
Upfront is calculated on the total loan amount
Trail Commission
For loans submitted from 1st January 2019, trail is paid on the outstanding loan balance in respect of each loan or part thereof originated by the broker at the end of the month and paid monthly after the settlement date or in the case of a construction loan, after the date of the first draw down.
Keystart will cease paying trail commission on any loan application received from 1 July 2021, if the loan is still active 60 months or more from either the settlement date (or first drawdown for a construction loan). Brokers won’t see the effects of this change until at least financial year 2027. Any existing loans with trail will not be impacted by this change.
Keystart will permanently stop paying the Trailer fee if/when when the following occurs:
The loan is in arrears for a consecutive period of 3 months
Keystart enters into a variation through its Hardship Scheme to ensure continuation of that loan
The loan is discharged
Keystart becomes the mortgagee in possession of the property
Clawbacks
Period | % Clawback |
0-12 Months | 100% |
Clawbacks are applicable where:
A loan is discharged within 12 months of the settlement date or, for construction loans, within 12 months of the first drawdown.
Where Keystart has taken position of the mortgaged property (mortgagee-in-possession) within 12 months of the settlement date or, for construction loans, within 12 months of the first drawdown.
A loan is inarrears for 3 consecutive months or more during the first 12 months from settlement or, for construction loans, during the 12 months after the first drawdown.
Where Keystart enters into a variation through its Hardship Scheme within 12 months of the settlement date or, for construction loans, within 12 months of the first drawdown.